BP Products North America, Inc. v. Oakridge at Winegard, Inc.

469 F. Supp. 2d 1128, 2007 U.S. Dist. LEXIS 93, 2007 WL 26811
CourtDistrict Court, M.D. Florida
DecidedJanuary 3, 2007
Docket6:06CV491ORL19DAB
StatusPublished
Cited by4 cases

This text of 469 F. Supp. 2d 1128 (BP Products North America, Inc. v. Oakridge at Winegard, Inc.) is published on Counsel Stack Legal Research, covering District Court, M.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
BP Products North America, Inc. v. Oakridge at Winegard, Inc., 469 F. Supp. 2d 1128, 2007 U.S. Dist. LEXIS 93, 2007 WL 26811 (M.D. Fla. 2007).

Opinion

ORDER

FAWSETT, Chief Judge.

This Case comes before the Court on the following:

1. Report and Recommendation [to Grant Motion to Enforce Compliance with Settlement Agreement], signed by Judge David A. Baker on October 20, 2006; (Doc. No. 123);
2. Objections to Magistrate’s Report and Recommendation and Incorporated Memorandum of Law, filed by Defendants Oakridge at Winegard, *1130 Inc. and Mahammad Qureshi on November 3, 2006; (Doc. No. 131);
3. Request for Oral Argument, filed Defendants Oakridge at Winegard, Inc., and Mahammad Qureshi on November 3, 2006; (Doc. No. 132);
4. BP’s Response to Objection to Magistrate’s Reports and Recommendation, filed by Plaintiff BP Products North America, Inc. on November 17,2006; (Doc. No. 135); and
5. Response to Objection to Magistrate’s Report and Recommendation, filed by Defendant Pacific Energy, Inc. on November 20, 2006. (Doc. No. 136).

Background

The dispute in the instant case involves a contract for the sale of a fuel service station located at 601 West Oakridge Road in Orlando, Florida. The Plaintiff, BP Products North America, Inc. (“BP”), instituted the instant lawsuit on April 11, 2006, seeking a judgment voiding the sale of the above-referenced station and suspending the operation of business at the site until certain conditions are met. (See Doc. No. 1, pp. 1-2). Defendants Oak-ridge at Winegard, Inc., and its principal Mahammad Qureshi (collectively “Oak-ridge”), filed a counterclaim against BP, arguing that BP charged Oakridge unequal prices for fuel amounting to a violation of the Robinson-Patman Act and unfair competition under Florida law. (See Doc. No. 38, filed on May 24, 2006, at pp. 10-11). Oakridge also filed a cross claim against Defendant Pacific Energy, Inc. (“Pacific”), alleging that Pacific failed to properly notify BP and failed to properly terminate the fuel supply agreement with BP as it was obligated to do under the sale. (See id. at p. 8). Pacific denied the allegations and instituted a cross claim against Oakridge for fraud in the inducement and breach of contract. (See Doc. No. 54, filed on June 5, 2006).

Defendant Oakridge at Winegard, Inc. and its principal Mahammad Qureshi operated a gas station and convenience store at the premises in question from 1996 until November of 2005. (See, e.g., Doc. No. 3-1, 3-2). It is undisputed that throughout this time period, Oakridge and BP were parties to an exclusive fuel supply agreement to sell BP brand fuel. 1 (See, e.g., Doc. No. 2-2, 2-3, 2-4). A rider to the fuel supply agreement provided that BP had the right of first refusal if Oakridge received an offer to purchase the premises at any time while the fuel supply agreement was in effect. (Doc. No. 2-4, p. 3).

By 2003, Oakridge had determined the station was not very profitable and hence sought to sell the premises and concentrate on other business ventures. (See, e.g., Doc. No. 56, Deposition of Mahammad Qureshi, at pp. 68, 70). However, Oak-ridge was unable to sell the premises for some time and began to lower its asking price. (Doc. No. 41-1 at ¶ 14). In November of 2005, Pacific Energy, Inc. and its principal, Arooj Ahmed, (collectively “Pacific”), contracted with Oakridge to purchase the premises in question. (See, e.g., Doc. No. 41-1 at ¶ 14). Oakridge and Pacific discussed the exclusive fuel supply agreement as Pacific was interested in selling Citgo fuel at the gas station instead of BP fuel. Mr. Qureshi stated to Mr. Ahmed that it would cost approximately $100,000.00 to institute an early termination of the fuel supply agreement. (See, e.g., Doc. No. 56, Deposition of Mahammad Qureshi, at pp. 96-98). This was the amount that might have to be paid back to *1131 BP and represented the amount of capital outlay BP had provided initially to construct the station. Accordingly, Oakridge reduced its purchase price by that amount in order to facilitate the sale, and Pacific began operating a Citgo fuel service station on the premises in question. (See, e.g., Doc. No. 56, Deposition of Arooj Ahmed, at pp. 28-31). When BP learned of the sale and subsequent switch to Citgo fuel around March of 2005, it removed any remaining BP trademarks and trade identities from the premises. (See Doc. No. 3-1 at ¶ 17).

It is undisputed that at no time prior to the instant litigation did Oakridge forward to BP a copy of the contract with Pacific or orally notify BP of the pending sale. (See, e.g., Doc. No. 41-1 at ¶ 14). Thus, BP never exercised ,a right to purchase the property pursuant to the contractual right of first refusal.

On April 11, 2006, BP initiated the instant lawsuit and applied to the Court for a preliminary injunction, seeking to void the sale and suspend the operations of the premises in question pending compliance with BP’s right of first refusal. (See, e.g., Doc. No. 2, filed on April 11, 2006). On June 26, 2006, the Court denied the motion for preliminary injunctive relief. (See Doc. No. 67, filed on June 26, 2006). On the same day, Defendant Pacific moved to refer the case to mediation, which the United States Magistrate Judge granted on July 5, 2006. (See, e.g., Doc. No. 70). On July 25, 2006, the mediator reported that the parties had reached an impasse. (See Doc. No. 78, filed on July 25, 2006). On the same day, BP placed $200,000.00 in escrow with Attorney Jerome Mitchell, of the law firm Riggio & Mitchell, P.A., in furtherance of the exercise of its right of first refusal to buy the service station in question. (See, e.g., Doc. No. 123, p. 5). The parties engaged in subsequent settlement discussions on July 27 and July 28, 2006, at which time BP and Pacific contend that the parties reached an enforceable settlement agreement.

On August 14, 2006, BP and Pacific Energy filed Notices of Settlement with the Court, stating that the parties had verbally agreed to the terms of a settlement agreement during a telephone conference on July 28, 2006. (See Doc. No. 83 & 84, filed on August 14, 2006). On August 15, 2006, BP filed a motion to enforce compliance with the alleged settlement agreement. (See Doc. No. 85, filed on August 15, 2006). Pacific Energy also filed a motion to enforce compliance on August 21, 2006. (See Doc. No. 89, filed on August 21, 2006). Oakridge filed its response in opposition on August 24, 2006, arguing that Oakridge never gave its attorney, Lee Schillinger, authorization to enter into an enforceable settlement agreement, and that there was never a completed agreement for the Court to enforce. (See Doc. No. 94, filed on August 24, 2006).

The United States Magistrate Judge conducted an evidentiary hearing on the motions to enforce the settlement agreement on November 2, 2006. (See Doc. No. 130). At the hearing, the Magistrate Judge heard testimony from,

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469 F. Supp. 2d 1128, 2007 U.S. Dist. LEXIS 93, 2007 WL 26811, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bp-products-north-america-inc-v-oakridge-at-winegard-inc-flmd-2007.